For students without an Individualized Education Plan (IEP), scholarships may be worth up to $5,000, or 80 percent of the average per-pupil expenditure in the assigned public school district, whichever is greater. For students with special needs who attended a public school with an IEP, the scholarship is worth up to $25,000.

Students are eligible if they either live in households with incomes up to 300 percent of the free and reduced-price lunch program ($142,913 for a family of four in 2019–20) or attend or live in the attendance zone of a public school designated by the state as “in need of improvement.” Once a student has received a scholarship, that student and his or her siblings remain eligible until high school graduation or age 21.

Oklahoma’s tax-credit scholarship program could be one of the most expansive in the nation because of the high income limit for eligibility; however, the $5 million cap on credits (of which $1.5 million is reserved for public school improvement grants) severely restricts the number and amount of scholarships that can be awarded. Additionally, the pro-rata distribution of tax credits to donors makes administration difficult for SGOs, as they cannot notify donors of the credit they will receive until the state tax commission receives all credits claimed for the year. Donors are also allowed only a 50 percent tax credit for donations (unless they commit to two years of giving, which raises their credit to 75 percent). The program has a reasonable level of school regulations. Participating schools must provide progress reports to parents, be accredited, follow health and safety codes and obey nondiscrimination laws. The program has a tremendous opportunity to be one of the nation’s strongest if the legislature expands eligibility and raises or removes the overall funding cap and removes the pro-rata method for distributing tax credits.

• Income Limit: 300 percent x FRL
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: Conditional
• Testing Mandates: None
• Credit Value: 50 percent / 75 percent
• Total Credit Cap: Yes
• Budget Cap: $3.5 million (private school scholarships)

SGO Requirements:

• Use at least 90 percent of contributions for scholarships
• Register as an SGO with the state
• Spend a portion of expenditures on scholarships for students who qualify for the free or reduced-price lunch program ($47,638 for family of four in 2019–20) in an amount equal or greater to the percentage of eligible low-income students in the state
• Ensure scholarships are portable during the school year and can be used at any qualified school that accepts the eligible student
• Conduct background checks on employees and board members
• Maintain full and accurate records on contributions, expenditures and other documentation required by the state

Okla. Rev. Stat. § 68-2357.206

No legal challenges have been filed against the program.